Property prices in Ireland continue upward and could reach new peak as early at 2020
Residential property prices in Ireland increased by 12.3% in the 12 months to July 2017 and have now increased by 65.2% since the bottom of the market in March 2013.
But while the annual rise is considerably more than the 7.1% recorded in July 2016, overall values are still 26% lower than the peak of the housing market in 2007, just before the global economic crisis.
However, new research suggests that if the current pace of house price growth continues then the previous high prices will return to Dublin by February 2020 and to the country as a whole by March 2021.
The latest official figures from the Central Statistics Office shows that in the year to July 2017 house prices in Dublin increased by 12.7% with apartments up 12%. The highest house price growth was in Dublin City, at 13.6% and the lowest growth in Fingal at 7.4%.
In the rest of the country prices were up 11.7% with houses rising 11.8% and apartments up 13.7%. The West region showed the greatest price growth, with house prices increasing 15.8% and the lowest growth was 8.2% in the Mid-West region.
Overall, the national index is 26% lower than its highest level in 2007. Dublin property prices are 26.4% lower than their February 2007 peak, while prices in the rest of Ireland are 32.2% lower than their May 2007 peak.
From the trough in March 2013, prices nationally have increased by 65.2%. Dublin prices have increased 82.2% from their February 2012 low and prices in the rest of Ireland are 56% higher than the trough in May 2013.
An analysis by Savills shows house prices may return to peak April 2007 prices in Dublin in just over two years in Dublin and a year later in the rest of Ireland. It forecasts annual price growth for the whole of 2017 is likely to be in the region of 8% to 12% but growth could slip back to 6% to 8% in 2018 and 2019.
A breakdown of the CSO data shows that the median price paid across Ireland was €212,500 with the highest €335,000 in Dublin, ranging from €500,000 in Dún Laoghaire-Rathdown to €300,000 in Fingal.
Outside Dublin, the highest median prices were in Wicklow at €290,000 and Kildare at €265,000 and the lowest in Longford at €78,647 and Roscommon at €82,000.